Tata Power DISCOM Issues Tender for 100 MW of Non-Solar Power to Meet its RPO

Will purchase power starting June 1, 2019, up to September 30, 2019


Tata Power Delhi Distribution Limited (TPDDL) has issued a Request for Proposal (RfP) for the procurement of renewable power (non-solar) on a short-term power purchase agreement. The last date for the RfP is May 20, 2019. The bidding will be done as per the revised guidelines for short-term procurement of power notified by the Ministry of Power.

Tata-DDL will procure up to 300 MUs or 100 MW of renewable energy for a period starting June 1, 2019, up to September 30, 2019, for meeting its renewable purchase obligations (RPO). The amount of energy could be increased by up to 20%, the RfP says, depending on the requirements. The minimum bidding capacity is 10 MW for an individual bidder.

According to the RfS, the confirmation to the renewable status of the source of power from the appropriate authority should be furnished by the supplier at the time of submission of contract performance guarantee and certificates. The DISCOM has also mentioned that if the power is being supplied through the alternate source, additional charges and losses if any, due to the cancellation of existing corridor and booking of the new corridor will be on account of the bidders.

Tata Power-DDL has also provided payment security mechanism in this tender. It will also provide a Revolving Letter of Credit equivalent to 100% of the weekly energy corresponding to the contracted capacity at the tariff indicated in the PPA. This credit will be opened before the supply of power begins. The Letter of Credit will be operated only in case Tata Power-DDL fails to make payment after a period of 30 days from the bill due date.

In March 2019, the Delhi Electricity Regulatory Commission (DERC) approved a power sale agreement signed between the Solar Energy Corporation of India (SECI) and TPDDL for procuring power from 50 MW of wind power projects. This procurement of power will be utilized for meeting TPDDL’s renewable purchase obligation.

Recently, the DERC approved another PSA between TPDDL and SECI for the sale of power from 300 MW ISTS-connected solar photovoltaic projects. The DERC also issued a similar order approving the PSA between the two bodies with certain modifications but refused to approve the tariff for the procurement of 20 MW of solar power.